please complete all parts to the problem

P14-17 (similar to) Question Help Mercer Corp, has 10 million shares outstanding and $63 million worth of debt outstanding. Its current share price is $69. Mercer's equity cost of capital is 8.5%. Mercer has just announced that it will issue $324 million worth of debt. It will use the proceeds from this debt to pay off its existing debt, and use the remaining $261 million to pay an immediate dividend. Assume perfect capital markets. a. Estimate Mercer's share price just after the recapitalization is announced, but before the transaction occurs. b. Estimate Mercer's share price at the conclusion of the transaction. (Hint: Use the market value balance sheet.) c. Suppose Mercer's existing debt was risk-free with a 4.28% expected retum, and its new debt is risky with a 4.93%expected return. Estimate Mercer's equity cost of capital after the transaction a. Estimate Mercer's share price just after the recapitalization is announced, but before the transaction occurs. Mercer's share price just after the recapitalization is announced, but before the transaction occurs is $1. (Round to the nearest dollar.)